Constellation Brands Earnings Preview

Constellation Brands STZ announces its next round of earnings this Thursday, April 08. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Constellation Brands earnings of $1.55 per share. Revenue will likely be around $1.87 billion, according to the consensus estimate. Constellation Brands reported a per-share profit of $2.06 when it published results during the same quarter last year. Sales in that period totaled $1.90 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 24.76% decline in the company's earnings. Revenue would be down 1.73% on a year-over-year basis. Constellation Brands's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Constellation Brands were trading at $236.45 as of April 06. Over the last 52-week period, shares are up 41.36%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Constellation Brands is scheduled to hold the call at 11:30:00 ET and can be accessed here.